National Catholic Forester

National Catholic Forester 30 NEW NCSF BYLAWS all or any class of certificates become impaired, the Board of Directors is authorized to charge each member's certificate with its equitable share of such deficiency in accordance with Illinois law. If not paid, the amount of the deficiency so charged shall either: A. Stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificate; or B. In lieu of or in combination with (A.) above, the owner may accept a proportionate reduction in benefits under the certificate. The Society may specify the manner of the election and which alternative is to be presumed if no election is made. The foregoing shall be applicable to all certificates to all members, including those certificates that have become paid up by their terms or are being continued in force as extended term insurance. No member shall be personally liable for indebtedness of the Society. No such assessment shall take effect unless a 30-day notification has been provided to the Director of the Illinois Department of Insurance, who shall have the ability to disapprove the assessment if the Director finds that such assessment is not in the best interests of the benefit members of the domestic society." (Pursuant to 215 ILCS 5/300.1(d)). Sec. 7.02 MISSTATEMENT OF AGE If the age of the insured has been misstated, the amount payable under the certificate shall be such as the premiums would have purchased at the correct age, provided that if the correct age was not an insurable age under the Articles of Incorporation and Bylaws of the Society, only the net premiums need be returned. Sec. 7.03 FINANCES All funds of the Society shall be available for the payment of benefits and of expenses incurred in conducting and furthering the work of the Society. All funds and assets shall be maintained and carried without separation or segregation, but with the maintenance at all times of adequate and sufficient reserves on all outstanding contracts and such contingent and other reserves as the Board of Directors shall determine. Any surplus in excess of required reserves and other liabilities may be distributed through the payment of equitable dividends to members of the Society as the Board may determine. Sec. 7.04 FRATERNAL CONTRACT The certificate of membership and insurance or annuity, together with any riders or endorsements attached to it, the application, the declaration of insurability (if any) signed by the applicant, the Articles of Incorporation and Bylaws of the Society and all amendments to them, constitute the entire contract when it is issued. Any subsequent changes, additions or amendments to the Articles of Incorporation and Bylaws shall be binding upon the applicant member, owner, beneficiaries and other persons affected, and shall govern and control in all respects, except that no changes shall destroy or diminish insurance and/or annuity benefits promised in the certificate when it was issued. Sec. 7.05 BENEFICIARIES Benefit certificates may be made payable to such person or persons, entity or interest as may be permitted under the rules and regulations of the Society and applicable state laws. In the event a named beneficiary predeceases the insured or is otherwise not legally entitled to receive the certificate proceeds, the certificate proceeds shall be paid per stirpes to the family members of the insured in the following succession, as applicable, (i) the surviving spouse; (ii) children; (iii) grandchildren; (iv) parents; (v) brothers and sisters; (vi) grandparents; (vii) other relatives in accordance with the laws of descent and distribution of Illinois. In the event it is determined that the deceased insured has no living relatives, after a reasonable search, the certificate proceeds shall be paid to the estate of the insured. No beneficiary change shall take effect unless received by the Society at its principal office during the lifetime of the insured. When it is received, any change shall take effect as of the date the request for beneficiary change was signed, as long as the request for change was mailed or actually delivered to the Society while the insured was alive. Such beneficiary change shall be null and void where the Society has made a good faith payment of the proceeds or has taken another action before receiving the change. ARTICLE VIII RESOLUTION OF DISPUTES Sec. 8.01 PURPOSE The purpose of this Article is to prescribe the sole means to present and resolve grievances, complaints or disputes brought by members, certificate owners, or beneficiaries against the Society or its directors, officers, agents, and employees. Procedures set forth in this Article are meant to provide prompt, fair and efficient opportunities for dispute resolution, consistent with the fraternal nature of the Society, without the delay and expense of formal legal proceedings. Sec. 8.02 SCOPE Except as expressly limited in this Article, this section applies to all past, current and future benefit certificates, members, insureds, annuitants, certificate owners, and beneficiaries and the Society. It applies to all claims, actions, disputes and grievances of any kind or nature whatsoever. It includes, but is not limited to, claims based on breach of benefit certificate, breach of contract, as well as claims based on fraud, misrepresentation, violation of statute, discrimination, denial of civil rights, conspiracy, defamation, and infliction of distress, against the Society, or its directors, officers, agents, or employees. This Article does not apply to claims or disputes made after the applicable statute of limitations Cont. from page 29

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